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Additional reasons to have your own offshore corporation

Offshore company formation – Privacy, profits & prestige. In the computer age, more than ever, many people are concerned about litigious attorneys, employers/employees, ex-spouses, ex-business partners, big brother and others invading their privacy. Would you like to have accounts with total confidentiality from the above intruders? Would you like to have the option of investing in high-yielding mutual funds and other strategies offshore that aren’t available at home? Would you like to give yourself the prestige and credibility of being the founder or officer of your own international company? Would you like to expand your business and offer your products or services to a worldwide marketplace, while at the same time, maintaining your confidentiality?

All of these benefits, and more, can be made available through your own International Business Company (IBC).

What are International Business Companies? How do they work? Why should I have one? Those are the three questions that come to mind for most people when they hear the term International Business Company or Offshore Corporation. Let’s see if we can clear up some of the mystery:

What is an Offshore Company or International Business Company? (IBC)

An international business company (also called “offshore company”) is a corporation or limited liability company that has been formed outside of your country of residence. One is well advised to choose the country of incorporation wisely.

Why should I have an IBC?

An IBC that has been established properly will give the owner financial confidentiality. If one has an offshore account in ones own name, the name of the account holder is easy to trace. Let’s say that the offshore bank mails bank account statements to the accountholder. If another party intercepts those statements, the owner of the account may be subject to personal scrutiny. However, if the account is in the name of a corporation and those papers are intercepted, there is not a direct personal tie to the signer on the account. Moreover, many offshore jurisdictions have strong laws protecting the account signer from being revealed to any outside party.

Which Jurisdiction Offers the Most Advantage?

In recent years, the Caribbean Island of Nevis has become one of the most attractive and convenient offshore corporate domiciles in the world by the enactment of the Nevis Business Corporation Ordinance 1984. In Nevis, before suing your company one must post a $25,000.00 bond with the courts. Then, the one pursuing legal action is required to file a brief justifying why he or she should be permitted to sue. If the representative of the courts feel the suit is not warranted, the litigant will not be allowed to sue. Moreover, they will forfeit their $25,000 bond! Needless to say, there are very few frivolous lawsuits in Nevis.

Multiple Companies

So, there are a multitude of reasons for having your own offshore companies. The above include just a few of the many advantages. Many people who have offshore corporations have several companies. Having more than one company allows funds to be transferred between companies that are free from government reporting. There is usually a significant reduction in paperwork because there may be no requirements by the government to report transfers of money between one foreign account and another.

Keeping it Legal

There is good news for the US or Canadian person. Taxes are to be paid on worldwide income generated in a controlled foreign corporation. However, one’s privacy can still be protected, while remaining tax compliant. To maintain one’s privacy, the stock in the offshore corporation can be owned by a private Nevada “C” Corporation (or for a Canadian an Alberta Corporation). This way, the income produced in the foreign corporation is reported on the tax returns of the corporation and not the individual. This can also be a tremendous tax-saving strategy, because the “C” corporation pays lower income taxes in most brackets than does an individual. As always, be sure to get good tax and legal advice from a licensed professional person.

Many jurisdictions that have a dependence on Great Britain have decreased or eliminated their privacy laws. The offshore tax havens that have independence from Great Britain have retained their strong privacy laws. Many of these countries receive a majority of their income from offshore services so they have a financial incentive to keep the privacy laws in place on a long-term basis.

We do not recommend the traditional British Dependant Territories such as Anguilla, Bermuda, Cayman Islands, Montserrat and Turks & Caicos. We also do not recommend the Isle of Man and the British Channel Islands (Jersey, Guernsey, Alderney). In addition to removing their privacy laws, these British Dependencies are implmementing a withholding tax on bank account interest. If you already have a corporation or account in one of these jurisdictions, we recommend that you contact us and quickly switch to a country such as one of our company’s recommended locations.

Personal Note to Our Treasured Clients

We believe in the philosophy of full compliance with US and international law. Experience has taught that you can skirt the law of the land and lose, or you can make it work for you and win. That is why we heartily recommend that you seek the counsel of the appropriate professional to make absolutely certain you are on the right track. Learn how to make the system work for you and be a winner!